Helping shops ensure everyone gets access to food and essential supplies

Some people reading the statement below may wonder what competition law has to do with helping people get food and supplies.

It's necessary to help supermarkets and other retailers co-operate in a very unusual situation.

The founding father of economics, Adam Smith, wrote 244 years ago in his book,

"An Inquiry into the nature and causes of The Wealth of Nations,"

that



It's because they take a similar view that most countries have found it necessary to have competition laws to limit the sort of conspiracy which Smith was writing about. E.g. restrictions on certain types of co-operation between different companies in the same industry - such as price fixing or rigging the results of tenders - which would reduce competition and act against the public interest.

In normal circumstances such rules are needed but thanks to COVID-19 present circumstances are not normal. and this is what Smith was writing about.

Hence the following briefing note about government action to suspend those rules to help people get access to food and essentials.

"We have announced a relaxing of competition laws to allow supermarkets to work together to ensure that everyone has access to food and essential supplies when they need them.

  • This Government will do whatever it takes to ensure people have the food they need - we’ve got good supply chains, farm to fork, there’s no reason for shops to be empty.
     
  • The relaxing of these competition laws will allow retailers to share data with each other on stock levels, cooperate to support each other’s shops, share distribution depots and delivery vans. It will also allow retailers to pool staff with one another to help meet this high demand. 
     
  • During this time we must all pull together for the good of our nation and ensure we protect the most venerable – these measures will do exactly that. We urge people to shop considerately and look out for NHS staff, friends, family and neighbours."

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